diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java
index 3e78666e1b5e..aa56e61307ee 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java
@@ -59,6 +59,7 @@ import org.jetbrains.annotations.PropertyKey;
 import java.util.*;
 import java.util.regex.Matcher;
 import java.util.regex.Pattern;
+import java.util.stream.Stream;
 
 public class HighlightUtil extends HighlightUtilBase {
   private static final Logger LOG = Logger.getInstance("#com.intellij.codeInsight.daemon.impl.analysis.HighlightUtil");
@@ -419,42 +420,54 @@ public class HighlightUtil extends HighlightUtilBase {
 
   static HighlightInfo checkVarTypeApplicability(@NotNull PsiVariable variable) {
     PsiTypeElement typeElement = variable.getTypeElement();
-    if (typeElement != null && typeElement.isInferredType() && variable instanceof PsiLocalVariable) {
-      PsiExpression initializer = variable.getInitializer();
-      if (initializer == null) {
-        String message = JavaErrorMessages.message("lvti.no.initializer");
-        return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
-      }
-      if (initializer instanceof PsiFunctionalExpression) {
-        boolean lambda = initializer instanceof PsiLambdaExpression;
-        String message = JavaErrorMessages.message(lambda ? "lvti.lambda" : "lvti.method.ref");
-        return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
-      }
+    if (typeElement != null && typeElement.isInferredType()) {
+      if (variable instanceof PsiLocalVariable) {
+        PsiExpression initializer = variable.getInitializer();
+        if (initializer == null) {
+          String message = JavaErrorMessages.message("lvti.no.initializer");
+          return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
+        }
+        if (initializer instanceof PsiFunctionalExpression) {
+          boolean lambda = initializer instanceof PsiLambdaExpression;
+          String message = JavaErrorMessages.message(lambda ? "lvti.lambda" : "lvti.method.ref");
+          return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
+        }
 
-      PsiElement parent = variable.getParent();
-      if (parent instanceof PsiDeclarationStatement && ((PsiDeclarationStatement)parent).getDeclaredElements().length > 1) {
-        String message = JavaErrorMessages.message("lvti.compound");
-        return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(variable).create();
-      }
+        PsiElement parent = variable.getParent();
+        if (parent instanceof PsiDeclarationStatement && ((PsiDeclarationStatement)parent).getDeclaredElements().length > 1) {
+          String message = JavaErrorMessages.message("lvti.compound");
+          return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(variable).create();
+        }
 
-      PsiType lType = variable.getType();
-      if (lType instanceof PsiArrayType && !lType.equals(typeElement.getType())) {
+        if (isArray(variable)) {
+          String message = JavaErrorMessages.message("lvti.array");
+          return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
+        }
+
+        PsiType lType = variable.getType();
+        if (PsiType.NULL.equals(lType)) {
+          String message = JavaErrorMessages.message("lvti.null");
+          return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
+        }
+        if (PsiType.VOID.equals(lType)) {
+          String message = JavaErrorMessages.message("lvti.void");
+          return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
+        }
+      }
+      else if (variable instanceof PsiParameter && variable.getParent() instanceof PsiParameterList && isArray(variable)) {
         String message = JavaErrorMessages.message("lvti.array");
         return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
       }
-      if (PsiType.NULL.equals(lType)) {
-        String message = JavaErrorMessages.message("lvti.null");
-        return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
-      }
-      if (PsiType.VOID.equals(lType)) {
-        String message = JavaErrorMessages.message("lvti.void");
-        return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).descriptionAndTooltip(message).range(typeElement).create();
-      }
     }
 
     return null;
   }
 
+  private static boolean isArray(PsiVariable variable) {
+    // Java-style 'var' arrays are prohibited by the parser; for C-style ones, looking for a bracket is enough
+    return Stream.of(variable.getChildren()).anyMatch(e -> PsiUtil.isJavaToken(e, JavaTokenType.LBRACKET));
+  }
+
   @Nullable
   static HighlightInfo checkAssignability(@Nullable PsiType lType,
                                           @Nullable PsiType rType,
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java
index c840246a3986..3ee2fe4e1568 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/SimpleAvailability.java
@@ -38,24 +38,24 @@ class Main {
     }
 
     private void forEachType(String[] strs, Iterable<String> it, Iterable raw) {
-        for (var str : strs) {
+        for (var str: strs) {
             String s = str;
         }
 
-        for (var str : it) {
+        for (var str: it) {
             String s = str;
             str = s;
         }
 
-        for (var  o : raw) {
+        for (var o: raw) {
             Object obj = o;
         }
 
         for (var v:<error descr="Expression expected"> </error>) {}
 
-        for (var v:  <error descr="foreach not applicable to type 'null'">null</error>) {}
+        for (var v: <error descr="foreach not applicable to type 'null'">null</error>) {}
 
-        for (var v : (<error descr="Cannot resolve symbol 'v'">v</error>)) {}
+        for (var v: (<error descr="Cannot resolve symbol 'v'">v</error>)) {}
     }
 
     private void tryWithResources(AutoCloseable c) throws Exception {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java
index f2bcf7951f20..09627856749f 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarInLambdaParameters.java
@@ -2,6 +2,8 @@ import java.util.function.Function;
 
 class C {
   void m() {
-    Function<String, String> f = (var var) -> var;
+    Function<String, String> f1 = (var var) -> var;
+    Function<String[], String> f2 = (<error descr="'var' is not allowed as an element type of an array">var</error> arr[]) -> "";
+    Function<String[], String> f3 = (var arr) -> "";
   }
 }
\ No newline at end of file